Bank of America warns that the AI investment boom is showing signs of a classic capital-cycle risk: surging spending, intensifying competition and falling prices. Hyperscaler capital expenditure expectations have jumped from $330 billion to $1 trillion, equivalent to roughly 3% of U.S. GDP. Meanwhile, AI token prices have fallen around 50% since summer, raising concerns that growing usage may not translate into sufficient revenue. The key risk: AI technology could succeed while investors suffer from overinvestment and declining returns.